In a warehouse on the outskirts of Shanghai, dozens of humanoid robots are performing tasks such as folding T-shirts, making sandwiches, and opening doors. These robots, operated by the Chinese startup AgiBot, work 17 hours a day, generating vast amounts of data used to train AI models that could reshape the way humans work, live, and interact.
The ambitious goal of AgiBot is to create robots capable of performing increasingly complex tasks autonomously. “Imagine a future where our robots can assemble themselves in our own factory,” said Yao Maoqing, a partner at AgiBot.
The importance of humanoid robots has caught the attention of Beijing, especially as the country navigates challenges like trade tensions with the U.S., demographic shifts, and slowing economic growth. During a visit to AgiBot’s facility last month, President Xi Jinping jokingly suggested that the robots could one day form a football team, highlighting the potential role of robotics in China’s future.
This focus on humanoid robots aligns with China’s larger ambitions to overhaul its manufacturing landscape. As the U.S. continues to negotiate trade agreements with China, the Chinese government is betting on humanoid robots to transform factory floors and drive new industrial growth. In recent years, Chinese humanoid robots have made headlines by performing feats such as somersaults, running marathons, and even playing football, as Xi envisioned.
China’s advances in artificial intelligence (AI), particularly in the development of humanoid robot software, are gaining traction, thanks to innovations from companies like DeepSeek and strong government backing. These robots are poised to move beyond their current status as novelties and evolve into highly skilled workers, potentially reshaping global manufacturing.
One key to China’s success in humanoid robotics is its focus on data collection and training. Unlike generative AI, which relies on vast online datasets, humanoid robots need more specialized data, such as learning to stack boxes or pour water. In Shanghai, AgiBot has set up a data collection facility, where 100 robots work under the supervision of 200 operators. Similar sites are being developed in Beijing and Shenzhen.
The Chinese government has also invested heavily in the humanoid robot sector. Over the past year, it has allocated more than $20 billion in subsidies and is establishing a $137 billion fund to support AI and robotics startups. The state is not only providing financial support but also becoming a major buyer of humanoid robots. In 2024, government procurement of these robots surged to 214 million yuan, up from just 4.7 million yuan the year before.
Subsidies are driving down production costs. Currently, the cost to build a humanoid robot is about $35,000, but this could drop to $17,000 by 2030 as more components are sourced domestically. In contrast, robots like Tesla’s Optimus cost between $50,000 and $60,000, according to Bank of America Securities.
China’s dominance in the hardware side of humanoid robotics is another advantage. The country can produce up to 90% of the components needed for these robots, creating a highly efficient and competitive supply chain. This allows Chinese companies to mass-produce robots at much lower costs than their foreign competitors. By 2024, 31 Chinese companies are expected to release humanoid models, compared to just eight from U.S. companies.
While the industry is still in its early stages, there are concerns about its impact on jobs. China’s manufacturing sector employs over 120 million people, and experts have warned that humanoid robots could affect as much as 70% of this workforce. At the 2023 National People’s Congress, experts suggested that China create a form of “AI unemployment insurance” to support workers displaced by robots.
Despite these concerns, the Chinese government views humanoid robots as a solution to labor shortages, particularly in industries such as elderly care. As China’s population ages, demand for eldercare services is growing, and humanoid robots could help meet this need. AgiBot’s Yao envisions robots in the near future performing tasks like organizing rooms, picking up packages, and even assisting with patient care in nursing homes.
The Chinese humanoid robotics sector is gaining momentum, with government support, rapid technological advancements, and cost reductions positioning it as a leader in the field. While challenges remain, particularly around workforce displacement, the long-term potential of humanoid robots to transform industries and improve lives is undeniable.
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